High-frequency trading firms on January 18 were active in Zee Media, South Indian Bank, and National Fertilisers Limited, making quick bucks by flipping trades in seconds. While South Indian Bank touched a 52-week high, Zee Media closed higher.

High-frequency trading firms (HTFs) or algo firms on steroids use complex algorithms and powerful computers to execute trades at lightning speeds. These firms typically try to capture the spread between the spot and futures prices, but recently they have been active in small, illiquid stocks as well.

The volumes generated by them, more often than not, attracts retail investors to these stocks.

Stocks where HFTs were active on January 18:Zee MediaActive names and traded stake: Graviton Research Capital (0.71 percent), HRTI Private Limited (1.1 percent), QE Securities (0.7 percent), Citadel Securities ( 0.58 percent)Stock movement and volumes: Gained 3.76 percent to Rs 16.55. Trading volumes at 6 crore shares versus one-month average of 2 crore sharesTechnicals: Stock is above 50-DMA and 200-DMA

Fundamental trigger, if any: NoSouth Indian BankActive names and traded stake: Graviton Research Capital (1 percent), HRTI Private Limited (1.07 percent)Stock movement and volumes: Up 8.27 percent to Rs 30.75. Trading volumes at 30 crore shares versus one-month average of 6 crore sharesTechnicals: Stock is above 50-DMA and 200-DMA

Fundamental trigger, if any: The company reported a net profit of Rs 305.6 crore for the October-December quarter, making a 197.42 percent jump YoY.National Fertilisers LimitedActive names and traded stake: Graviton Research Capital (0.92 percent), HRTI Private Limited (0.62 percent)Stock movement and volumes: Gained 2.99 percent to Rs 112. Trading volumes at 4 crore shares versus 1-month average of 2 crore sharesTechnicals: Stock is above 50-DMA and 200-DMAFundamental trigger, if any: No

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